FUTURIS remains on track to post a profit in its forecast range of $80-85 million for 2007-08 when its annual profit results are announced at the end of the week as it attempts to turn its fortunes around after a tough year.

In spite of a costly revamp of the company’s flagship Elders business, Futuris remains confident it is on the road to recovery after the June crisis which saw its profit estimates slashed 15-20pc due to under performing managed investment scheme and beef production units and the resignation of chief executive Les Wozniczka.

The predicted cost of non-recurring items, primarily made up of the Elders restructure has risen by $26.2 million to $47.8 million, which is largely made up of redundancies and restructures of the five state-based offices to 20 regional offices across the country.

The company underlined its commitment to implementing the suggestions made by the recent strategic review, which included divestment of under-performing non-core assets and debt reduction.

It is hoped the review will signal a change in fortune for Futuris, which has seen 39pc of its share value wiped in the past year.

Elders Rural Services manager Mike Guerin said business units to be discontinued would include small scale supply chain operations in citrus packing, based at Renmark, SA and Griffith, NSW; horticulture, seed and fodder production, greasy wool trading and fuel distribution.

On the other hand, efforts will be made to develop Elders’ core network, with horticulture and dairy identified as key growth segments.

“Both are prime markets for agricultural inputs and Elders has the opportunity to increase its penetration rates to the levels it has achieved in other sectors such as broadacre cropping and livestock,” Mr Guerin said.

Elders has also got its eyes fixed on the fledgling corporate farming sector and will aim to service corporate farming enterprises.

The debt reduction part of the review has been aided by asset sales of close to $100 million.

The business has sold off hardwood plantations for $90.2 million and Clean Seas Tuna for $7.8 million.

Debt levels will sit at $523 million, lower than the expected $600 million.

The share market has not been influenced by the news. Futuris shares on Tuesday afternoon had dropped just two cents since the announcement to sit at $1.26.